Export Finance Insurance Corporation (EFIC) will support Melbourne-based GP Graders (Victoria) Pty Ltd (“GP Graders”) with a documentary credit guarantee for its latest export contract to Turkey. GP Graders, a world leader in the manufacture of grading and packing machinery for the cherry industry continues to build on its export success to see it through the current economic crisis.
GP Graders will be paid by a documentary credit issued by a Turkish bank for approximately EUR360,000 with payments due over a five year term. EFIC is providing a documentary credit guarantee to Westpac, which guarantees the payments due from the Turkish bank under the terms of the documentary credit.
According to GP Graders’ company director Stuart Payne, EFIC’s involvement in its export dealings has allowed its buyer to pay the Turkish bank for the equipment over a five year period, which has been a ‘deal winner’ for it.
“In 2001, 5% of our business was export now it is 75% to countries such as Turkey, Chile and Italy,” said Mr Payne.
“With the cost of machines in the vicinity of AUD$1million, it is important to be able to put together financing packages that help us provide a competitive advantage in these major deals.”
EFIC has worked previously with Westpac to support other GP Grader transactions, providing documentary credit guarantees to Turkish banks.
EFIC’s managing director, Angus Armour said: “We are pleased to continue to assist GP Graders expand its export business though the provision of export finance guarantees.”
“We are committed to helping small to medium sized Australian businesses succeed internationally and credit guarantees are one of the ways we can do this,” said Mr Armour.